13. Component UnitsCOMPONENT UNITS
Page Fund Dept
2-9 7855 Tourism Business Improvement District $ 495,000
10-11 2700 Business Improvement District $ 192,344
Total. Component Units $ 6875344
Mw
e2% r110% Apo%
1L. M ff - ---- ---
M o N I A INI A i5,i C's t'E 1Fi CtC'I� lit+�t= ii}ft
KALISPELL CONVENTION AND VISITOR BUREAU
FY 2014 MARKETING PLAN
July 1, 2013—June 30, 2014
The Kalispell CVB is dedicated to enhancing the economic vitality of our community by promoting Kalispell as a year-
round leisure travel and meeting and convention destination by efficiently marketing our attributes and amenities while
encouraging continued respect for our outstanding natural environment and quality of life. The KCVB marketing plan
identifies a mix of advertising, sales and service programs to deliver a consistent brand message and outstanding
experiences through a cohesive allocation of bed tax and Tourism Business Improvement District funds.
Kalispell's brand aligns with the Montana Brand, offering a cohesive voice when marketing our state:
® More spectacular unspoiled nature than anywhere else in the lower 48.
o Kalispell is surrounded by Montana's iconic natural wonders of Glacier National Park and Flathead
La ke.
• Vibrant and charming small towns that serve as gateways to our natural wonders.
o Kalispell is a mix of proximity, city comfort and discovery. when visitors make Kalispell part of their
Montana vacation, they will discover something fun, exciting, unexpected or remarkable no matter
the direction they head.
• Breathtaking experiences by day and relaxing hospitality at night.
o In Kalispell we are welcoming tour guides and genuine people who care about the visitor
experience. We provide lodging, dining and entertainment with a sense of Montana sophistication
and affordability that our visitors find both surprising and comfortable.
Kalispell is:
• We are in the MIDDLE of what people come to Montana for: iconic natural wonders of Glacier National Park
and Flathead Lake and a variety of recreation opportunities.
• We are nonstop DISCOVERY: there's something new to see and do in every direction
• We are BALANCE for an outdoor -centric trip: from national brand stores to fun boutiques, from symphony
concerts to farmers' markets, from blue plate specials to four -star gourmet
• We are GENUINE hospitality: Kalispell is a real town with community events and warm, welcoming people
who are enthusiastic about sharing the place they live
• Kalispell is the location of larger meeting and convention space and event facilities and more guest rooms
than other locals in the Valley
® The regional trade center for retail, health care, business and education
• A cooperation of numerous associations and organizations all with the common goal of improving our
economy and creating a vibrant community
• A travel destination for southern Alberta and eastern British Columbia, Canada
• Accessed by Glacier Park Int'I Airport and Amtrak's Empire Builder
Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 2
Opportunities:
Increase awareness of Kalispell as a travel destination, not a pass through to the Park and other areas in the
Flathead Valley.
® Create signature events during the winter and shoulder seasons to create a measurable impact on year-
round visitations.
0 work with community leaders and public officials to find opportunities to improve our public assembly
venues which are limited due to size and condition.
® Increase awareness of year-round activities in Kalispell, Glacier Park and the Flathead Valley to decrease the
impact on the local economy due to the opening and closing of the Going To The Sun Road.
® work with the airport and other community leaders to identify opportunities to increase flights and seat
capacity.
® Communicate effectively with travelers and local businesses to minimize the negative perceptions around
the federal government sequestration cuts. Those impacts include: 1) the closure of the Glacier Park Intl
Airport control tower, 2) the decrease in hours of the custom office which impacts private air traffic from
Canada by diverting them to other airports such as Great Falls or Spokane, 3) decrease in availability of
services at Glacier National Park and 4) decreased hours of operation at border ports of entry.
5
Our audience consists of adventure travelers and Geotravelers who like to mix their outdoor adventure with culture,
history and a charming small town experience. Kalispell's audience is not united by age or demographic or by their
reason for visiting (vacation vs. business). what our visitors share is that they're looking for a taste of outdoor adventure
-- hiking, boating, rafting, wildlife viewing, skiing, fishing, hockey —with the opportunity to experience culture, history
and an affordable variety of lodging, dining and shopping.
The 2012 Institute for Tourism and Recreation Research non-resident survey provides the following information on
travelers spending at least one night in Flathead County:
28/ of groups have all first time visitors 53/ of groups with all repeat visitors
25%flew ❑n a portion of their trip 66%used auto/truck as their travel mode to enter MT
89% visited Glacier National Park
Top activities include: scenic driving (81%), nature photography (58 ), day hiking (56/), wildlife watching (50%) and
recreational shopping (39 ).
The leisure traveler visiting our area for the first time is primarily here for Glacier National Park, and specifically to
experience the Going To The Sun Road. Visitors will choose Kalispell as the base camp for their trip because we offer a
central location to a number of activities and provide affordable vacation options, particularly for families. The repeat
visitor is less dependent on availability of all areas of Glacier Park and branches out to the other attractions such as
Jewel Basin, Lone Pine State Park, and partakes in local culture such as the historic walking tour of downtown Kalispell.
The Canadian market predominantly visits for shopping, particularly around Canadian holiday weekends. They also
participate in sports such as skiing and golf as the prices are lower than similar venues in Canada. The KCVB signature
events are designed to attract participants and spectators from Canada. This market is a strong segment of the repeat
visitor during the shoulder and winter months.
Kalispell will support and leverage the brand awareness that the Montana office of Tourism has achieved in the key
markets of Seattle, Chicago and Minneapolis through participation in coop online and print advertising campaigns. The
KCVB will direct other consumer marketing funds to the neighboring Canadian provinces of Alberta and southeastern
British Columbia and the drive, direct flight and Amtrak markets which include Spokane/eastern Washington, Coeur
D'Alene Idaho, Seattle, Portland, and northern California.
is
Kalispell Convention & Visitor Bureau Marketing Plan -- FY 2014 Pg. 3
The KCVB signature events provide a strong incentive to drive visitations from our target markets during specific months
that historically have demonstrated lower occupancy.
* Montana Dragon Boat Festival - September: key markets include Calgary, Lethbridge, Edmonton, British
Columbia, Portland, Tacoma/Seattle, and San Francisco.
• Montana Pond Hockey Classic - February: key markets include Alberta and British Columbia, Minneapolis,
eastern Washington and northeast U.S. through collaboration with our promoter Pond Hockey Classic.
® Montana Spartan Race - May: during FY'14 Spartan Race Inc. is proposing to offer one of their upper level races
in Montana which will serve as a strong destination race bringing participants from all areas of the U.S.
The meetings and conventions, group and incentive target market includes groups that are 80+ in size interested in a
locale which provides their attendees recreational opportunities and iconic vacation attractions such as Glacier National
Park. During FY'14 the KCVB will focus on meeting planners in the Pacific Northwest, primarily Seattle and Portland.
2 r a •' S:4 :a�
i
Today's traveler is more social, more adventurous and looking for a meaningful vacation. Specifically what they are
looking for are unique experiences that connect them with the destination in a way that is authentic. Adventure should
not be assumed to just mean a daring bungee jump off a bridge into a deep ravine; adventure includes both relaxing and
active experiences that takes a traveler out of their normal routine. Glacier National Park, Flathead Lake, and the vast
availability of outdoor recreation found in northwest Montana offers unlimited adventure. In the center of it all lies
Kalispell, a friendly community with historic charm, affordable adventure and soul -stirring beauty.
Today's traveler is attracted to a destination that speaks in a voice that is frank and honest, while conveying expertise.
They are attracted to a destination that celebrates and supports sustainability. Kalispell's story is told through imagery
and messaging that is authentic and celebrates the character of our area and sustainability such as the availability of
local products and the role of local community volunteers in creating and maintaining many of the trails and parks that
visitors enjoy.
87% of travelers use the internet for the bulk of their trip planning. Specifically the websites used to make travel
decisions are social media and consumer reviews. 88% of travelers consult reviews before making a booking and half
say reviews are the greatest influence on booking choices. (Eye For Travel, DigitalVisitor.com) This "earned media" is
what consumers trust above other forms of advertising. Nielsen Global Survey reported that 92% of consumers trust
word-of-mouth and recommendations from friends and family above more traditional media, an 18% increase since
2007. Kalispell"s social presence includes Facebook, Twitter and a sponsorship of Kalispell's Trip Advisor site.
Additionally we connect consumers to DiscoverKalispell.com through live feeds of those social media sites.
A Michigan State University study shows that people using smart phones have tripled. The study also revealed that
wireless use was higher on vacation (40%) than at home (25%) and that people use the web more to plan vacations
(80%) than for work (70%). Since Wi-Fi is available at most locations travelers check local weather, restaurant
recommendations, fishing reports, trail maps and much more during their visit. Destination Marketing Organizations
don't get to decide which platform or device is used to access that information, the visitor decides. With the increase in
use of mobile devices Kalispell is retrofitting DiscoverKalispell.com to responsive web design to provide travelers with
the most comprehensive and user-friendly access to internet connectivity and information regardless of their device of
choice.
During 2011 and 2012 hotel occupancy in Kalispell increased a total of 12.3%.July and August trend well above 90%
while occupancy during November through February historically has averaged around 35%. Kalispell saw a 7% increase
in occupancy for the months of Nov 2012 — Feb 2013. In speaking with local Kalispell restaurants and retail outlets
several stated that they saw a 3% increase in business during the late fall and winter months. The key strategies for
FY'14 are designed to continue to make a measurable impact on visitations during the shoulder and winter months.
Kalispell Convention & Visitor Bureau Marketing Plan -- FY 2014 Pg. 4
x �. a tr n +} `uy> .. vv w �: v, Lf:O'� : • • `x ?i UklJ k�`i• l • ..;?�.4i ..
The Kalispell Convention & Visitor Bureau supports the Montana Tourism and Recreation Strategic Plan 2013-2018.
1. Achieve increased inquiries and visitations through a targeted consumer marketing campaign
11. Increase publicity placement of Kalispell in travel media in key markets
III. Improve the visitor experience and available resources
IV. Play an active role as a voice for tourism and in the planning and evolution of community enhancements
V. Generate qualified meeting and convention leads
V1. Recruit regional sports tournaments
V11. Secure events that have long-term potential during shoulder and winter seasons
Consumer Travel
a. increase Kalispell CVB opt -in subscriber base by 1,000 individuals
b. Increase unique visitors to DiscoverKalispell.com by 10% over FY'13
c. Generate 4 media stories in target markets through increased public relations efforts
d. Promote Kalispell at 3 consumer travel shows in key markets
e. Generate 3 FAM trips to Kalispell (travel media, press trips, tour operators, promoters, planners)
Groups/Sports/Events
a. Achieve 1,000 unique room nights between September and .tune in the groups and meeting market
b. Achieve 3,000 unique room nights between September and June in the special event and tournament market
c. Secure 3 events during target seasons
To reach the FY14 marketing plan goals the key strategies are designed to build upon successes realized in FY13 and look
to new opportunities to connect with potential travelers and build the awareness of Kalispell as a travel and meeting
destination. The initiatives are designed to reach the visitor during the three-phase travel decision process of
inspiration, orientation and facilitation through utilization of the media and technology that reach today's travelers.
Strategies:
Rationale / Expected outcome:
Funding:
.................. � _..e _ �_ �._. e__ _ ..� .... w ..� _ _ _.__ __ , _ �_...__ _ _ _ �............... _.._..... _... _ . m..........
Achieve increased inquiries and visitations through targeted consumer
GOAL l f
marketing campaign
r,,,..........................d....,........... ........ .........«..,.-.__..-..,,........... ..-.,,,-r...,,. .....`.....«.,�,-�..,,....,..�- .... .. ,,,,,,�.,.,...,,..,.. ..........._-...�.....-. ._.,.,.......... ..... .... -....w......., .. .... .. ..
Continue to enhance and refine the website to create an exceptional
planning tool for visitors. This will include a retrofit of the site in
Responsive web Design to augment the content, look and functionality
based on the user's screen size (i.e. which device they are using) with a
DiscoverKalispell TBID
goal of increasing site duration by mobile devices. Continue to monitor
website analytics to decrease overall site bounce rate, increase site
duration and pages per visit. Engage consumers through a feed of
reviews from Trip Advisor, Facebook and other social media.
In
Travel
Decision:
t
€ f
Inspiration
Orientation
Facilitation
Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 5
The advertising strategy will focus on increasing visitations between
September and June through highly trackable media that builds
awareness of Kalispell as a travel destination:
Online marketing through banner advertising TBID / Inspiration
Trip Advisor sponsorship Bed Tax p
Advertising and MTOT Coops and other sources
Social Media
Print, radio and broadcast opportunities that demonstrate strong ROI in i
our target markets.
Promoting the fall, winter and spring experiences available in Kalispell 1
and surrounding area and identifying Kalispell as an adventure sports
TBID J
Bed Tax
destination through promotion of signature events and activities.
KCVB will send subject -specific communications quarterly and as
E-Direct Marketing applicable to promote special events and create incentives for travel Bed Tax
through promotion of packages, sample itineraries and signature events.
KCVB Database
Increase opt -in KCVB database through trade and travel shows, online TBID J
and social media advertising and promotional campaigns.
Bed Tax
The Kalispell visitor guide will be used as a fulfillment piece. Annual
redesign of the guide will take into consideration the findings from
TBID J
MTOT's visitor guide study and include Region/CVB design standards on
Bed Tax
cover to identify as "official" state travel guide. Increase the number of
Collateral
distribution points in our target markets.
Niche publications will be produced in cooperation with local businesses
and organizations. Examples include regional birding brochure and a
TBID
brochure promoting local wineries, breweries and distilleries.
------------ram..
f
KCVB will promote Kalispell at three consumer shows per year which
Travel Shows
include Calgary and targeted demographics such as Sportsman Expos,
TBID J
Winter Sports Expo, and Travel and Adventure shows held in identified
Bed Tax
target markets.
GOAL 11
l
1 Increase publicity placement of Kalispell in travel media in key markets
The KCVB will invest in publicity efforts to position Kalispell as a travel
destination. Media coverage and endorsement of Kalispell will continue
Public
to drive discovery of our destination to an audience that we could not
TBID
Relations/Publicity
afford to reach with traditional advertising. This will be achieved through
hosting travel writers, generation of story pitches and press releases
highlighting specific activities and to promote our signature events.
GOAL Ill
Improve the visitor experience and resources
The KCVB seeks to create brand ambassadors in the local community by
promoting Super Host and Sustainable Business training.
Traveler Resources Expanding available visitor services through participation in MTOT's VIC
Program.
Continued implementation of the downtown and city-wide Wayfinding
system .
Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014
Inspiration
Orientation
Facilitation
Inspiration
Orientation
Inspiration
Orientation
Inspiration
Orientation
4
Inspiration
Orientation
TBID J
Facilitation
Bed Tax i
Bed Tax 1 Facilitation
TBID / # Facilitation
Bed Tax l t n
Pg. 6
Play an active role as a voice for tourism and the planning and evolution
GOAL IV
of community enhancements
The KCVB will continue to work cooperatively with Voice of Montana
Tourism Industry
Tourism and Tourism Matters to Montana, to educate Flathead Valley
Relations
residents, business leaders and legislators on the economic benefits of
tourism and importance of tourism funding.
GOAL V
Generatequalified meeting a convention d e i and ion leads and receive RFP's
e t
DMAI Membership and EPowerMlNT subscription
Meeting Planner Trade Shows and familiarization tours
Meetings and
Conventions
Assist member lodging properties to develop effective reporting program
to help TBID gauge room pickup through TBID initiatives
Build through the CRM a consistent message to planners interested in
Kalispell. Push out through online and print advertising and emarketing.
GOAL Vi
Recruit sports tournaments
Y
TBID
Bed Tax Facilitation
TBID Inspiration
Orientation
TBID
TBID / Inspiration
Bed Tax
Create incentives for state and regional sporting events to relocate to
Sports Tournaments Kalispell that will drive room nights during the winter and shoulder TBID inspiration
S
p Facilitation
season.
g
GOAL V! I secure events that have long-term potential during shoulder and winter
seasons
The KCVB will continue to identify events that have national appeal and
reinforce the destinations key attributes. The events will be strategically
placed in the shoulder and winter seasons to minimize regional date
conflicts and meet strict criteria for longterm growth. The KCVB will
I Inspiration
Event Recruitment continue to build out of market participation and identify growth TBID
expectations for Dragon Boat, Spartan Race and Pond Hockey events. Facilitation
ex
p g p Y
Create a national brand that Kalispell is the place for adventure sports
and enthusiasts. Identify opportunities to reinforce that message
through local partners and places.
The KCVB combined budgets of bed tax and TBID total $593,546 with 60/ of that total directed at the key marketing
strategies described above. In addition to the TBID funds KCVB utilizes a private account to manage the signature
events which is comprised of revenues and expenses directly related to the administration and marketing of Dragon
Boat and Pond Hockey. Revenues include grant funds, event sponsorships, participant registrations, and vendor fees.
Expenses charged against those revenues include advertising and marketing expenses, promoter fees, safety and
insurance expenses and outside services utilized for event production.
Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 7
=TBi D Marketing Plan Budget FY' 14
TBiD Projected Revenue , $ 475,0001
Rolloverfrom FY'13s $ 20,E
Total $ 495,000
:Program Description
:Staffing - wages and benefits
5 ..,... .........................
';Operations
Rent
Phone
Office Supplies
Postage & copies
Audit
:Bookkeeping
Tax Prep
'City of Kalispell Assessment Fee
`Travel & entertainment expenses
Tech support
Equipment & Furniture
Research, Education, Memberships
:Smith Travel Reports
Training and Education
Memberships uriACary (TMMT, Voices of MTTosm, KD, Ca CVB)
'Website
Maintenance and enhancements
?SEa &. SEM
:Publications
'Visitor guide and niche brochures
"Consumer Marketing
Buil d photo a nd vi deo I i bra ry
Social Media administration (Trip Advisor, Facebook,Twitter)
Creative services: creative for online, print, broadcast
Media buy: placement for online, print, broadcast
Travel show attendance
Trade show booth
Airport VI C maintenance
wayfinding slgnage
.Event Marketing
Montana Dragon Boat Festival
:Glacier Series Spartan Race
'Pond Hockey
'Other event sponsorship
Event Promoter Recruitment
Group Marketing
Trade shows
Meeting Planner FAM
Incentive program to generate leads from meeting planners
:Group photo and video library
Online advertising -banner ads, social media
Print advertising - meeting planner publications
Customer Relationship Management System (CRM)
Sports Tournament Recruitment
Public Relations/Publicity
Hosti ng tra vel mecli a
Press releases, story pitches, reactive requests, press room
Visitor hospitality training, volunteer appreciation
�Kaiispell branded merchandise
Total
ucner
Program % of Total Event Total Event'. Total Event Net to
Project Total Budget Revenues Revenues Expenses TRID
$146,918 30%
$ 31,400 sue`
$6,780
$2,520
$900.
$2,400
$6,000
$2,400
$200;
$5,000
$2,500,
$500;
$2,200
_. 8,800 2%
$4,8Q0
$500
$3,500
$ 25,000 5%
$15,000
$10,000
$ 12,000 2%
$ 87,150 18%
$15,000 .
$ 20,000
$8,000
$25,000
$ 8,0 00 -
$400.
$750
$10,000
$ 85,000 17%.
$25,000 $89,300 $114,300 ($114,950): ($650)
$20,000 $0 $20,000 ($20,000, $0
$20,000' $66,500 $86,500 ($69,800) $16,700
$10,000
$10,000
$ 79,000 16%
$20,000
$10,0QQ :
$ 5,0 00 -
$ 6,000 .
$10,000
$8,000
$5,000 -
$15,000 -
$ 19,732 4%
$7,300
$10,000
$500
$1,932:
$495,000 100%
Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 8
TOURISM BUSINESS IMPROVEMENT DISTRICT
FUND: 7555
PROJECTED FIDUCIARY RECEIPTS AND FUNDS DUE TO
BEGINNING GASH
10100 CASH:
Total Cash
RECIEPTS
10100 Room Tax
Total Receipts
TOTAL AVAILABLE
DUE To
21210 Due to TBID
ENDING CASH
CASH:
ACTUAL
ACTUAL
BUDGET
ACTUAL
BUDGET
FY10/11
FY11/12
FY12/13
FY12/13
FY13/14
$0
$0
$1,605
$1,605
$928
$0
$224,161
$224,161
$224,161
$0
$280,069
$280,069
$280,069
$105
$473,695
$473,695
$475,300
$1,605
$439,617
$439,617
$441,222
$928
$4751P000
$475,000
$475,928
$224,161
$278,464
$475,300
$440,294
$475,928
$0
$1,605
$0
$928
$0
PROGRAM DESCRIPTION
The Tourism Business Improvement District is a component unit of the City of Kalispell.
The City does not record revenues and expenses of the district. The funds are passed
thru to the Chamber of Commerce. The Chamber is responsible for managing the funds
and providing the City with audited financial statements.
Attached is the work plan approved by Resolution 5647.
The entire work plan is available on the City's website under City Clerk, Resolutions.
9
BUSINESS IMPROVEMENT DISTRICT
FUND: 2700-490-470330
PROJECTED REVENUE AND FUND SUMMARY
BEGINNING CASH
10100
CASH: Operating
Total Cash
REVENUES
363010
Assessments
311100
Levy
312000
Penalty & Interest
346050
Festivals
365000
donations
371010
Interest
Total Revenue
TOTAL AVAILABLE
EXPENSES
Operating
ENDING CASH
CASH: Operating
ACTUAL
ACTUAL
BUDGET
ACTUAL
BUDGET
FY10/11
FY11/12
FY12/13
FY12/13
FY13/14
$115,960
$129,945
$128,044
$128,044
$1160040
$1151>960
$129,945
$128,044
$128,044
$116,040
$231)194
$541,099
$398
$3,375
$0
$1,370
$251477
$60,057
$1,194
$940
$1,361
$11,296
$24,142
$57,466
$800
$1,000
$1,000
$1,200
$24,446
$63,841
$576
$397
$10,118
$926
$24446
WOO
$1,000
$1,500
$5,000
$1,000
$82436
$90,325
$85,608
$100,304
$951946
$1981396
$220,270
$21302
$2281348
$211,986
$685451
$921226
$213,652
$1121308
$1921344
$129,945
$1289044
$0
$116,040
$19,642
DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WAS CREATED May 17, 2004
by Resolution 4 8 9 1 A adopting a budget and providing funding through a mill levy
and assessment combination.
10
BUSINESS IMPROVEMENT DISTRICT
FUND: 2700-490-470330
EXPENDITURE DETAIL/SUMMARY
PROGRAM;
STAFFING:
349 Mileage/Supplies/Conferences/ Rent
350 Contract staff- coordinator
353 Contract staff - other
IMPROVEMENTS:
240 History plaques on buildings
244 Way finding signs
245 Welcome sign at entrances to district
COMMUNICATIONS:
322 Newsletter
345 Cell Phone/Wireless
352 Web Site Development/logo
357 Contractor - Twitter/Facebook/Blog
DEVELOPMENT ACTIVITY:
351 Development Activity: Contract services
354 Concerts
355 Facade Improvement Program
365 Advertising/Publications
366 Sponsorship/Events
530 Insurance
TOURISM:
356 Printing
BEAUTIFICATION:
360 Art
364 Cleaning & Flowers
522 Administrative Transfer
Total Budget
ACTUAL
BUDGET
ACTUAL
BUDGET
FY11/12
FY12/13
FY12/13
FY13/14
$31>711
$41>000
$5,560
$4,000
$271>961
$28,000
$35,183
$28,600
$71>750
$81)800
$15,268
$151)000
$9,000
$511000
$301000
$401000
$10,000
$5,440
$10,000
$200
$224
$300
$745 $850
$821
$1,000
$2,862 $41>200
$11864
$4,000
$8,538 $95600
$2,010
$31650
$7,059
$70,705
$20,321
$131)278
$1,306
$3,000
$0
$20,000
$18,037
$10,000
$10,598
$211>000
$1,230
$31,000
$2,585
$3,500
$81363
$75295
$980
$7,600
$355 $5,350 $719 $6,000
$2,000 $2,000
$21)157 $5,500 $8,090 $4,000
$2,152 $2,152 $2,645 $3,416
$923226 $213,652 $1121.7308 $192,344